Cal Pierson, president and chief executive officer of the Maryland Hospital Association said that he would retire from the post in July 2008. Pierson, 60, has been in leadership positions with the MHA and its affiliate organizations for the past 16 years. Cal is an innovator and consensus builder who has always remained focused on providing better healthcare to the citizens of Maryland, said MHA Board Chairman Ben Mason in a written statement. During his time with the association, Pierson led the MHAs push for increased access for the uninsured. He was also a vocal critic of an effort by CareFirst Blue Cross and Blue Shield in Maryland to convert to for-profit status and then sell to WellPoint. That plan was blocked in 2003. The MHA hired Chicago-based Witt/Kieffer to head up the search for a new leader.
The Federal Trade Commission closed its investigation of the merger of the University of Pittsburgh Medical Center and Mercy Hospital of Pittsburgh after nearly a year. First announced in September 2006, the deal will guarantee continuing financial support for the Sisters of Mercy, and will establish a fund of approximately $100 million to support the local community, according to officials. UPMC also agreed to make necessary capital investments and to operate Mercy as UPMC Mercy. The hospital, which is owned by Mercys parent company, Catholic Health East, faced a declining patient population base in a competitive area and posted a $42 million operating loss over the three years prior to the original announcement. The deal still requires Vatican approval, but officials said that they expect the merger to close by year-end. Pennsylvania Attorney General Tom Corbett approved the merger in May. The deal is just one of a handful of proposed hospital mergers across the country that the FTC has been scrutinizing since its victorious challenge of Evanston (Ill.) Northwestern Healthcares 2000 merger. (Sept. 24, p. 8).
The Doctors Co., a leading physician-owned medical-malpractice carrier in Napa, Calif., agreed to acquire SCPIE Holdings, a publicly traded health liability insurance provider based in Los Angeles, for about $281 million. The Doctors Company possesses similar values as our company, including ... a commitment to quality products and services, said Mitchell Karlan, chairman of SCPIE Holdings board of directors, in a written statement. The $28-per-share in cash purchase price represents a premium of nearly 27% over the $22.09 per share closing price of SCPIE on Oct. 15, the last trading day prior to the announcement. The transaction is subject to regulatory approvals as well as approval from the majority of SCPIE Holdings shareholders.
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